In an online article, SMSF Alliance principal David Busoli said that the increase in the SMSF member limit from four to six will require either the return of the government at the next federal election or the introduction and passing of the legislation in the few days that Parliament will sit before the election.

“Labor will certainly not entertain an increase in member numbers, particularly when the most useful ramification of the change will be to allow younger members to offset their contribution tax against the excess franking credits that will cease to be refunded to parent pension recipients under Labor,” Mr Busoli said.

The Turnbull government first announced its plans to increase the SMSF member limit back in April 2017. However, the measure gained further appeal when Labor unveiled its proposal to remove cash refunds for excess dividend imputation credits.

The removal of dividend imputations will have the most impact on those who pay little or no tax such as self-funded SMSF retirees as they have no tax to offset it against.

Inviting adult children with accumulation accounts into the fund is therefore appealing to some SMSF trustees as they can increase the taxable income of the fund and offset franking credits.

Mr Busoli said that this may motivate the government to push this measure through in the limited time it has left.